logo
Plus   Neg
Share
Email

Japan Inflation Climbs 3.7% On Year In May

japantrade-042110.jpg

Nationwide consumer prices in Japan accelerated 3.7 percent on year in May, the Ministry of Internal Affairs and Communications said on Friday - hitting their fastest pace since 1982.

The headline figure was in line with expectations and up from 3.4 percent in April.

Core CPI, which strips out the volatile prices of food, was up 3.4 percent - also matching forecasts and up from 3.2 percent in the previous month.

Among the individual components, prices for fuel climbed 8.9 percent on year, followed by furniture (5.4 percent), food (5.3 percent), recreation (4.0 percent), communication (4.7 percent) and clothing (2.3 percent).

On a monthly basis, overall inflation and core CPI both added 0.4 percent.

Among the individual components, prices for fuel climbed 4.2 percent on month, while prices for housing, clothing and education were flat. Prices for furniture tumbled 0.5 percent.

Overall consumer prices in the Tokyo region - considered a leading indicator for the nationwide trend - climbed 3.0 percent on year in June. That was below forecasts for 3.1 percent, which would have been unchanged.

Core CPI for Tokyo gained 2.8 percent on year - unchanged and in line with expectations.

Among the individual components, prices for fuel climbed 7.0 percent on year, followed by furniture (5.1 percent), recreation (5.0 percent), food (4.5 percent), communication (3.0 percent) and education (2.8 percent).

On a monthly basis, overall inflation was down 0.2 percent and core CPI was flat.

Among the individual components, prices for fuel and recreation both added 0.2 percent on month, while prices for clothing dipped 0.5 percent and communication was down 0.4 percent.

Also on Friday:

• Japan saw a seasonally adjusted unemployment rate of 3.5 percent in May, the Ministry of Internal Affairs and Communications said - beating forecasts for 3.6 percent, which would have been unchanged from the April reading.

The jobs-to-applicant ratio came in at 1.09 - surpassing expectations for 1.08, which also would have been unchanged from the previous month. The participation rate was 59.9 percent, up from 59.5 percent a month earlier.

The number of employed persons in May was 63.97 million, an increase of 570,000 or 0.9 percent on year. The number of unemployed persons in May was 2.42 million, a decrease of 370,000 or 13.3 percent on year.

• The average of household spending in Japan was down 8.0 percent on year in May, the Ministry of Internal Affairs and Communications said - standing at 271,411 yen. That was well shy of forecasts for a decline of 2.1 percent on year following the 4.6 percent contraction in April.

The average of monthly income per household stood at 421,117 yen, down 4.6 percent on year. The average of consumption expenditures per household was 293,050 yen, down 8.8 percent on year.

• The value of retail sales in Japan was down 0.4 percent on year in May, the Ministry of Economy, Trade and Industry said - coming in at 11.434 trillion yen. That beat forecasts for a decline of 2.0 percent following the 4.3 percent contraction in April.

Sales from large retailers fell 1.2 percent on year to 1.593 trillion yen - also beating expectations for a decline of 2.5 percent following the 6.7 percent contraction in the previous month.

Commercial sales were down 0.8 percent on year to 37.235 trillion yen, the data showed, while wholesale sales dipped 0.9 percent to 25.801 trillion yen.

On a seasonally adjusted, monthly basis, retail sales climbed 4.6 percent - beating forecasts for an increase of 2.9 percent following the 13.6 percent fall a month earlier.

For comments and feedback contact: editorial@rttnews.com

Economic News

What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.

Follow RTT